Motorola said it would spin off its semiconductor unit into a separate, publicly traded company.
Motorola said the move reflects its increasing focus on finished communications products, such as wireless networks and telephone handsets.
After the forced resignation last month of chief executive Mr Christopher Galvin, analysts had said a new leader would likely review the company's businesses, which could result in the sale or spin-off of one or more units. The spin-off of the chip unit, however, comes before a new head has been named.
Motorola said it has not finalised details of the spin-off but said the new publicly traded semiconductor business plans to pursue acquisitions of additional strategic product lines and technology.
In recent years, Motorola's Semiconductor Products Sector has pulled back from making the heavy, multibillion dollar investments required to build the latest generation of semiconductor production plants.
Instead, it has partnered with other electronics companies in what it refers to as an "asset light" business strategy, sharing revenue streams in exchange for splitting investment burdens, speeding its own product development.